As reported by Wu, the Swiss regulator, the Financial Market Supervisory Authority (FINMA), recently released guidance on stablecoins. FINMA highlighted the increased money laundering risks associated with these digital assets.

In addition, the document also addresses financial market legal aspects related to stablecoin projects and their potential impact on regulated institutions.

FINMA stressed that stablecoins not only increase the risk of terrorist financing and sanctions evasion, but also pose reputational risks to the entire Swiss financial center.

To mitigate these risks, Swiss regulators have proposed classifying stablecoin issuers as financial intermediaries.